v3.26.1
Note 11 - Note Payable
 9 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 11 – NOTE PAYABLE

 

Effective February 1, 2024, the Company entered into a Securities Purchase Agreement dated January 30, 2024, with five institutional investors whereby the Investors advanced the Company an aggregate of $1.25 million in gross proceeds and the Company issued to the Investors 8% Senior Secured Original Issue 20% Discount Convertible Promissory Notes, in the aggregate principal amount of $1.54 million (the “Notes”).

 

Each Note bore interest of 8% per annum and was to mature on July 30, 2025. Further, the notes were convertible, at the option of the holder, into shares of common stock at a conversion price which was adjusted for certain down-round provisions, as defined in the Securities Purchase Agreement. At issuance, the Company elected the fair value option to account for the Notes. The Notes were initially recognized at a fair value of $2.7 million. Excluding the impact of the change in fair value related to instrument-specific credit risk, which was recorded in other comprehensive income, subsequent changes in fair value were recorded in non-operating income at each reporting period.

 

During fiscal 2025, the Company issued an aggregate of 267,597 shares of common stock to satisfy all remaining outstanding obligations of the Notes.